China Securities Regulatory Commission (CSRC) is planning to expand its regulatory oversight to include cryptocurrency, in a bid to clamp down on unlicensed crypto transactions and digital assets scams in Hong Kong.
Crypto Trading Regulation Necessary in Hong Kong
According to local news outlet Etnet on Tuesday (September 7, 2021), the deputy chief executive of the CSRC, Liang Fengyi, said that the regulatory agency could establish cryptocurrency regulations. The CSRC is the chief regulator of China’s securities market.
While the CSRC is responsible for creating policies and laws for the securities industry, the agency’s oversight does not extend to cryptocurrency. This is because crypto does not fall under securities and is not regarded as a payment method.
However, the rise of unlicensed cryptocurrency trading activities in Hong Kong is a concern for regulators. According to Fengyi, there has been an increase in scams involving digital…